Crown Holdings Reports 3Q 2014 Results

Crown Holdings, Inc. announced its financial results for the third quarter ended Sept. 30, 2014. Net sales in the third quarter grew to $2,594 million over the $2,389 million in the third quarter of 2013 primarily due to the impact of the Mivisa acquisition.
 
Segment income (a non-GAAP measure) rose to $328 million in the third quarter over the $281 million in the third quarter of 2013 primarily due to improvements in North America Food and Asia Pacific, along with contributions from the Mivisa acquisition.
 
“We are pleased with our performance during the third quarter as sales, segment income and income per share before certain items all increased significantly,” John W. Conway, chairman and CEO, said. “The integration of the Mivisa acquisition is proceeding according to plan and European food can demand in the third quarter was strong. Demand for beverage cans was robust throughout our developing market portfolio and was particularly strong in Southeast Asia and Turkey.
 
On Aug. 31, 2014 the company entered into a definitive agreement to acquire EMPAQUE, a leading Mexican manufacturer of aluminum cans and ends, bottle caps and glass bottles for the beverage industry, from Heineken N.V., in a cash transaction valued at $1.225 billion, subject to adjustment. The acquisition is subject to customary closing conditions, including competition authority approval.
 
“We are fortunate to have reached an agreement to acquire EMPAQUE, Mexico’s leading producer of beverage cans,” Conway added. “This acquisition will significantly enhance Crown’s position in beverage packaging, both regionally and globally. In North America, we will become the second largest beverage can producer, supplying over 24 billion cans annually to a balanced portfolio of beer and soft drink customers. On a global basis, over 50% of our beverage can revenue will be in the faster growing developing regions. In addition, we will add to Crown the Western Hemisphere’s largest bottle cap business and an excellent Mexican glass bottle business.”
 
Net income attributable to Crown Holdings in the third quarter was $244 million, compared to $101 million in the third quarter last year. Income per diluted share was $1.76 in the third quarter compared to $0.73 in the third quarter of 2013. Net income per diluted share before certain items increased to $1.36 over the $1.04 in the third quarter of 2013.
 
Nine Month Results
 
Net sales for the first nine months of 2014 rose to $6,970 million over the $6,585 million in the first nine months of 2013, reflecting the impact of the Mivisa acquisition and increased global beverage can volumes.
 
Segment income in the first nine months of 2014 grew to $813 million from the $749 million in the first nine months of 2013, primarily due to increased beverage can volumes and contributions from the Mivisa acquisition.
 
Net income attributable to Crown Holdings for the first nine months of 2014 was $374 million compared to $275 million in the first nine months of 2013. Income per diluted share for the first nine months of 2014 grew to $2.70 compared to $1.94 in the same period last year. Net income per diluted share before certain items increased to $2.94 over the $2.50 in 2013.